29 RSCH - Startup Presentations To Angel-Seed Stage Investors and Partners - 7.07

Taligo, LLC
Startup Presentations
To Angel/Seed Stage Investors and Partners
Recommendations for Best Practices, a White Paper
July 5, 2007
Author
John Gale
President, Taligo, LLC
Member Board of Advisors, Silicon Valley Association of Startup Entrepreneurs
Editorial Review Board

Joe Becker Rod Hoagland Mike Pogue
President, Dolphin Ventures Partner, Tatum, LLC President, Last Mile Research
Co-Founder, Silicon Valley Author, Funding and Financial Co-Founder, Angel Capital Network
Association of Startup Entrepreneurs Execution for Early Stage
Companies Laura Roden
Ken Boasso Managing Director, VC Privé
President, Keychain Logic Eric Johnson, CPA Former Managing Director,
ISV Chair, Executive Council on Senior Vice President, The Angels' Forum
Software as a Service, Software & Silicon Valley Bank
Information Industry Association Don Ross
Tim Massey Member Sand Hill Angels
Dhaval Brahmbhatt CEO, Mondowave and Life Science Angels
CEO PHYchip Principal, Band of Angels Fund
Co-Founder and Chairman Emeritus Eric Walczykowski
IEEE San Francisco Bay Area Michelle Messina Deloitte Accelerator
Nanotechnology Council President, Former Member,
Explora International, LLC The Angels’ Forum
Craig DeNoce
President, MSI Catharina Min
Officer in three startups with Partner,
successful acquisition exits Squire Sanders & Dempsey LLP
Barbara Harley Steve Mushero

President, Harley Consulting Group Managing Director of GlobalTech
Author, International Business Author,
Incubation for Global Trade Off-Shoring the Middle-Class
© Copyright 2007 Taligo, LLC

Table of Contents
Table of Contents ............................................................................................. 2

Author............................................................................................................... 3
Editorial Review Board..................................................................................... 3
Introduction ...................................................................................................... 5
Applicability of This Document ....................................................................... 7
Applicability by Intended Financial Exit...................................................... 7
Other Uses of The PowerPoint Presentation ............................................... 8
Objectives For The First Meeting .................................................................... 8
The Company’s Objectives ........................................................................... 8
The Company’s Tactics ................................................................................ 9
Investor/ Partner Objectives ......................................................................... 9
Investor/ Partner Tactics ............................................................................ 10
Checklist of Materials for the First Meeting.................................................. 10
PowerPoint For Financially Oriented Investors ......................................... 12
PowerPoint For Strategic Investors ............................................................ 12
The Presentation of The PowerPoint............................................................. 13
PowerPoint Slides........................................................................................... 13
Versions of the PowerPoint Presentation ................................................... 14
Glossary........................................................................................................... 23
Index ............................................................................................................... 24
Disclaimer
This white paper provides information that may be useful to technology startup companies for initial meetings with angel/seed
stage investors or partners. This white paper is for informational purposes only and is not intended to be legal advice or
investment advice and should not be relied on for such purposes. In addition the facts and circumstances of each situation are
different and may be fluid and unpredictable. Thus, advice must be sought on each specific situation from well-informed legal,
investment, tax, financial, and management professionals.
Neither Taligo LLC nor any interviewee, author, editor, or reviewer is responsible for or has any liability for any act or omission
on their own part or of Taligo LLC or any other interviewee, author, editor, or reviewer.
© Copyright 2007 Taligo, LLC Page 2

Author
John Gale is President of Taligo, LLC, a strategy and corporate development consulting firm
(www.Taligo.com). John’s experience includes strategic venture capital, M&A, portfolio management,
business development, sales, marketing, and engineering. John was vice president, business development
for Magnify.com a CRM analytics startup later acquired by Choice Point. Earlier, John was Vice
President and CTO for ITII, an M&A unit of International Thomson (UK).
John is a member of the Board of Advisors for WorkIt Inc., Ontooo, and the Silicon Valley Association
of Startup Entrepreneurs (www.svase.org) . He is a member of the Board of Directors of the Silicon
Valley Engineering Council (www.svec.org). He has been a member of the Board for COADE, the
Silicon Valley Association of Startup Entrepreneurs, and the NISO accredited Standards Board of the
Association for Information and Image Management (AIIM). JohnG@Taligo.com
Editorial Review Board

The following executives contributed to this white paper. Their contributions are greatly appreciated.
Each of the individuals listed below may distribute this intact white paper, as they desire.
Joe Becker Joe Becker is President of Dolphin Ventures, an Angel investment firm
(www.dolphinventures.com). Joe was cofounder of and long time chairman of the
Silicon Valley Association of Startup Entrepreneurs (SVASE).
joe@dolphinventures.com
Ken Boasso Ken Boasso is President of Keychain Logic which provides strategic business
planning, executive leadership, and customized revenue acceleration services to the
Software-as-a-Service (SaaS) and On-Demand sectors (www.KeyChainLogic.net).
Ken is chair of the ISV Best Practices Committee of the Executive Council on
Software as a Service for the Software & Information Industry Association.
kboasso@keychainlogic.net
Dhaval Brahmbhatt Dhaval Brahmbhatt is President and CEO of PHYchip Corporation, a technology
commercialization and IC design services company (www.phychip.net). Dhaval is
Cofounder and Chairman Emeritus of the IEEE San Francisco Bay Area
Nanotechnology Council and Vice President of the Silicon Valley Engineering
Council (wwsw.svec.org). dhaval@phychip.net
Craig DeNoce Craig DeNoce is President of MSI Inc, a go-to-market consultancy for technology
companies. He was in startups for 10 years with several acquisitions (Isadra by
Verticalnet, Timestock by CA, EcoSystems by Compuware) and earlier was a
senior marketing at Sybase and Oracle. cdenoce@msinvent.com
Barbara Harley Barbara Harley is President of the Harley Consulting Group, internationally
recognized experts on innovation environments, entrepreneurship eco-systems, and
business incubation. She is Founder and Executive Director (retired) of the
International Business Incubator, now the US Market Access Center. Barbara is
the author of International Business Incubation for Global Trade (to be released
Fall 2007). BLHarley@aol.com

Editorial Review Board continued…
Rod Hoagland Rod Hoagland is a partner with Tatum LLC (www.tatumllc.com). Previously,
Rod held CFO and financial executive positions with three startups. Rod authored
Funding and Financial Execution for Early Stage Companies.
Rod.Hoagland@TatumLLC.com
Eric Johnson, CPA Eric Johnson is a Senior Vice President of Silicon Valley Bank, a full service bank
for technology companies (www.svbank.com). Earlier, he was in startups for 12
years with the last one, CacheFlow Inc., going public in 1999. ejohnson@svb.com
Tim Massey Tim Massey is a Principal of the Band of Angels Fund LP, an early stage venture
capital fund (www.BandAngels.com). Tim is also CEO of Mondowave.
tim@bandangels.com
Michelle Messina Michelle Messina is president of the global direction and strategy agency, Explora
International LLC (www.explorainternational.com). It provides strategic
marketing and revenue-focused consulting services to international companies
launching into the U.S. market and has specialized expertise working with
government-sponsored business acceleration programs.
mmessina@explorainternational.com
Catharina Min Catharina Min is a partner in the corporate department of Squire, Sanders &
Dempsey LLP (www.ssd.com). She specializes in representing high technology
companies and international companies in corporate, securities, financing and
mergers and acquisitions matters. Squire Sanders is a firm with over 800 lawyers in
33 cities worldwide. cmin@ssd.com
Steve Mushero Steve Mushero is Shanghai-based Managing Director of GLOBALTECH
(www.SteveMushero.com). He is a veteran of numerous startups and global
organizations in Silicon Valley and internationally, typically as Chief Technology
Officer. Steve authored Off-Shoring the Middle-Class. Steve@SteveMushero.com
Mike Pogue Mike Pogue is CEO of Last Mile Research (www.LastMileResearch.com), a high
speed Internet based services startup with a standalone exit. Mike was a co-founder
of the Angel Capital Network. MPogue@LastMileResearch.com
Laura Roden Laura Roden is Managing Director of VC Privé, which connects private investors
with high quality venture capital fund limited partnership opportunities
(www.vcPrive.com). She was formerly Managing Director, The Angels' Forum,
and CEO of the Silicon Valley Association of Startup Entrepreneurs (SVASE).
Laura was CFO and VP Finance & Investor Relations at PowerTV (acquired by
Cisco). lroden@well.com
Don Ross Don Ross is a member of the Sand Hill Angels and Life Science Angels. Earlier,
he co-founded Health Publishing Inc., built a national distribution network, and
negotiated the company’s subsequent acquisition. dross@sandhillangels.com
Eric Walczykowski Eric Walczykowski is with the Deloitte Accelerator, a member of Deloitte Touche
Tohmatsu (www.deloitte.com). He is a former member of The Angels’ Forum
ericw@deloitte.com

Introduction
Early stage companies in Silicon Valley want to be successful in their initial presentations to angel or seed
stage investors or potential partners. Unfortunately, outside Tier I (please see the Glossary) many of these
initial presentations are of low quality and are prepared by poorly informed executives who lack clarity on
many key points. Further, outside Tier I, the potential investors and potential partners may be poorly
informed, of varying experience, and lacking clarity on a number of key points.
This white paper is written for the various participants who will be involved in:
• Establishing initial relationships between a technology focused company (the “Company”)

and with Angel or seed stage investors or partners
• Participating in a first meeting between the Company and the “Investor” for the purpose of
exploring potential joint interest in an alliance, licensing of technology, a development
agreement, angel or seed stage investment, and/or an acquisition.
1
This white paper provides a series of recommendations fostering the use of Best Practices to assist those
who are preparing questions to ask their legal counsel or investment advisor concerning strategy or tactics
as they prepare for this first Investor meeting. Prior to that point it may be useful as a guide for internal
discussions as to what plans and decisions might by made before raising funds. Thus this White Paper is
not legal or investment/financial advice.
Further, it has been written from the unique perspective of Silicon Valley and thus may be inapplicable in
other locations where processes, criteria, and in some cases even the facts may be perceived differently.
Many Investors have contributed to this white paper. The author shares their hope that this white paper
will lead to better presentations and more effective use of the Company’s and the Investor’s time.
In this white paper, the Company’s objectives are assumed to be one or more of the following:
• A development agreement
• Licensing of technology
• Some other type of alliance
• Angel or seed stage financial investment or strategic investment
• Investment now with possible acquisition later
• Acquisition now or later − As one example, some investors/acquirers in the medical device
community provide criteria by which they will invest or acquire at a later date.
Thus, the Company is interested in an alliance or funding to support a launch or growth as a normal part
2
of the company life cycle. Presentations by companies in distress are not addressed in this white paper.
Prior to its first meeting, the author assumes that the Company:
1 Some consider the term "Best Practices" to be too absolutist and not referenced to needs for alteration to fit
circumstances. The need for well informed alteration is clear. However, the audience for this white paper is more used
to the term “Best Practices” than the terms “Successful Practices” or “Green Paper”.
2 For restructuring issues, please see Equity Planning, A White Paper For Those Associated With Restructuring an Early
Stage Startup, by Fred Greguras, Rod Hoagland, Eric Johnson, Tim Massey, Osamu Tagaya, and John Gale, edited by
John Gale, published by Taligo, LLC, April 2003

• Is a startup or a small established company based in Silicon Valley
• Is focused on technology as the basis of its offering (IT, nanotechnology, alternate energy,
sustainable environmental technology, medical, biotech, etc.)
• Is incorporated in California, Delaware, or (less desirably) Nevada, preferably as a “C”
corporation
• May have just launched an angel or seed stage fundraising campaign. This ranges from
having completed only founder and perhaps FFF (see Glossary) financing to being a small
established private company that is raising funds.
Some serial entrepreneurs present only to investors that they know from prior successes. This white paper
does not address their unique situation based on strong prior relationships.
This white paper considers Investors to be both those with financial interests and those with strategic
interests. These distinctions can be “fuzzy.” Thus, while some Investors clearly are financial investors and
others have purely strategic interests, many Investors have some combination of these motivations.
Further, frequently, they may not understand each other’s agendas in a useful way.
Financial Investors include:
• Most Angel investors (wealthy individuals) and Angel funds

• Seed stage venture capital firms
• Some corporate investors
For the purposes of this white paper, Strategic Investors are trying to accomplish something that supports
3
the strategic goals of their organization. These Investors include the following:
• Early stage corporate investors including corporate development executives, business

development executives, product development executives, and other executives who
commercialize technologies. Within a company, these units do not necessarily work
together.
• Some early stage private equity investors
• Some seed stage venture capital funds that invest in early stage startups where a non-
financial objective is very important. Their objectives tend to be one or more of the
following; specific relationship focus, product focus, technology focus, market theme, and
economic development. For example, some economic development units funded by
government entities invest in startups with the intent of creating jobs, usually within a
defined geographic area. One early stage fund invests only in early stage semiconductor
startups that wish to serve customers in a specific country.
• Some Angel investors act as the venture capital arm of a company that they founded or
control.
3 Corporate venture funds are housed within corporations. They may have financial or strategic objectives. If their
objective is to generate financial returns then they are somewhat similar to traditional venture capital firms. However if
their objectives are strategic, then their objective is to support the future product/service offerings of the corporation.
The typical strategic venture capitalist unit is a part of the corporate development activity of an established corporation.
Thus, they may also be interested in licensing technology or in some other business relationship with a startup. Their
due diligence processes frequently differ from those of financial investors.

Applicability of This Document
In all cases the advice of knowledgeable legal counsel & licensed investment advisors should be obtained.
This white paper describes the first presentation and some prior interactions. It has been prepared with
consideration of the unique ways Silicon Valley does business. As one example, Silicon Valley startups do
not prepare prospectuses or private place memoranda, instead, they prepare PowerPoint presentations.
The PowerPoint presentation should support progress towards an intended financial exit, as described
below. Please also see the material on the Technology PowerPoint slide later in this white paper.
Applicability by Intended Financial Exit

The more experienced, sophisticated, professional, and adaptable the team (including employees,
Investors, and key partners), the more likely they will achieve their goals. Unfortunately, some CEOs,
wealthy individuals, and potential partners with less experience do not understand this.
Tier I startup CEOs and investors expect one of the following exits:
4
IPOs on the NASDAQ. When Silicon Valley refers to an IPO, it is usually on the NASDAQ.
Startups that actually achieve these exits are almost always founded by experienced, sophisticated,
professional entrepreneurs working with sophisticated Silicon Valley experienced angels and
similar venture capitalists.
High-Multiple (of original investment amount) Acquisition Exits. For acquisitions of all
types, the “selling” of the acquisition itself will require conforming to the information
requirements of the acquiring organization. Early investors may be required to instill capital in
stages in order to achieve this exit.
Shorter Term Moderate Multiple Exit Acquisitions. There is now a shorter term acquisition
exit strategy where after a smaller investment and over a relatively short period of time, the
Company develops its first customers and then sells out to an acquirer before scaling the business
to robust revenues. These exits can be attractive because a smaller pool of Investors, share in the
(smaller) financial exit with the employees, etc. A number of Silicon Valley investors focus on
such exits.
Bridge loans with a predetermined rate of interest, security, and maturity
Tier II startup CEOs and investors typically achieve one of the following exits:
IPOs of Varying Success. (less frequent)

WR Hambrecht Style Auctions. (a NASDAQ IPO without a typical investment bank)
Moderate Multiple Exit Acquisitions. As the anticipated multiple decreases, Investors will lose
interest. Startups that target these exits typically receive investments from sources other than the
high-multiple-exit focused Silicon Valley Investor (Tier I) community.
Low Multiple Exit Acquisitions. Startups anticipating these exits are usually funded outside of
the Tier I and Tier II Investor communities.
4 IPOs in other countries such as London, Toronto, Hong Kong, etc. are not addressed in this white paper.

Dividend Exits. (usually not on purpose)
5
Restructuring. (not expected)
Tier III startup CEOs and investors typically achieve one of the following exits:
Low Multiple Exit Acquisitions.

Dividend Exits. The Company becomes a standalone profitable business and delivers a financial
exit to the Investor by paying dividends. A Company without an anticipated liquidity event from
IPO or acquisition is unattractive to most sophisticated Silicon Valley Investors.
Restructuring.
Failure to raise funds. If an inadequate amount of funding is raised, the funds should be
returned, not expended.
Other Uses of The PowerPoint Presentation

The presentation for Investors is typically edited for meetings with potential strategic partners, early
customers; and candidates for, employment, the Board of Advisors, and the Board of Directors.
Objectives For The First Meeting
The Company’s Objectives

In the first meeting, the Company’s objectives are:
Determine the financial/strategic fit. Is the Investor a good fit for the Company and qualified
to help? What non-financial benefits such as development partnerships,
equipment/manufacturing support, marketing/channel partnerships, etc. are likely? What are the
Investor’s interests and what types of deals have been done? What is the Investor’s strategy for co-
investment, follow-on investments, and financial/IP exit?
Determine personal fit. The CEO will “live with” the Investor through good times and bad,
much like a marriage with a difficult divorce procedure. Is this an individual with relevant
competencies with whom the CEO wishes to be in the trenches when the going gets tough?
Evaluate the Investor representatives. To see which, if any, of those individuals present are
qualified to really help the Company achieve the goals required to justify the next round of
funding.
Gain intelligence. Ask the Investor for suggestions, such as what would strengthen the offering,
what are the deficits, etc. The more the Investor is engaged, the more likely a deal will occur.
Gain references and recommendations. Who does the Investor know that can help the
Company? If the Investor is uninterested, the Investor might recommend someone who might be
interested.
5 Please see Equity Planning, A White Paper For Those Associated With Restructuring an Early Stage Startup, by Fred
Greguras, Rod Hoagland, Eric Johnson, Tim Massey, Osamu Tagaya, and John Gale, edited by John Gale, published by
Taligo, LLC, April 2003

Influence the Investor’s due diligence team. Suggest domain expertise for due diligence.
6
Decision process. Determine the Investor’s decision process and timeframe .
Achieve mutual interest in moving forward and progress to meeting #2.
The Company’s Tactics

Before the first meeting, the Company’s objectives are:
• Determine if the company has made a competing investment.

• Screen out Investors who are just performing market research before scheduling the meeting.
• Determine who will attend the meeting. Know who will attend; review their web site and
their background. The PowerPoint will be customized for this meeting based on this
research.
• Agree on a meeting objective when the meeting is scheduled.
• Establish the agenda when the meeting is scheduled.
In the first meeting, the Company’s tactics include:
• Review the agenda and time availability

• Being on time, attending as a team when appropriate. Many investors and partners schedule
back-to-back meetings at one hour intervals. Their most precious resource is their time.
• Present key information about the business and team in 15 minutes or less using a
PowerPoint presentation. This is the primary focus of this white paper.
• Have material on hand to support an in-depth discussion of the competition
• Hold back more privileged information for future meetings after Investor qualification
• Determine if the Investor representative has the power to say yes. If not, do not give them
the opportunity to say no.
Investor/ Partner Objectives

Investors understand that most Company presentations sound like good ideas. But, only a small
percentage has the management team, available market, sustainable competitive advantage, etc. to become
success stories. In the first meeting, the Investor’s objectives are:
• Develop a connection with the presenter(s). Some feel that relationship “chemistry” is the
key issue.
• Try to understand what the Company is really doing, what are the key issues, and the
competence?
• Determine what it will take to “know” that the technology will commercialize
• Determine what it will take to align expectations between the Company and the Investor(s).
• Determine if this is an opportunity to invest, partner, or license a product or technology that
may help to build out an internal roadmap or vision? Will involvement with this Company
“Place a marker” in an area of potential future interest?
• Determine if valuation (or other financial) expectations are “in the ballpark.”
• Achieve mutual interest in moving forward and progressing towards a potential deal
6 At the end of a first meeting with investors, Vladimir Miloushev, founder of Attune Systems was known to say, “Right
now - on a scale of 1 to 10 - what is the probability that you will spend more time on this deal?”

Investor/ Partner Tactics
Investors will sometimes describe their organization’s way of participating in the business community. If
the Investor does not volunteer this information, the Company needs to ask for it. This includes:
• Whether or not they have read any of the Company’s “paper” in advance
• Ability to invest and/or lead both now and in future rounds, typical amounts invested and at
which stages (as initial investments), co-investment strategy. What percentage of the fund
has been invested/committed? If a strategic Investor, whether the “fund” is funded or
“balance sheet funded.”
• Discussion of investments/alliances /licensing /etc. done in the past
• How the Investor can deliver relevant non-financial value; deep domain knowledge; market
connections, technology, etc. “Dumb Money” can be acceptable if both the Investor and the
Company understand this and why/how the Company will get the “Smart Money”
elsewhere.
• Previous experience as a successful investor at which stages
• Areas of interest at the present. Any unique due diligence process, criteria, or metrics
• What type of relationship the investor would like to have with this Company, as an
individual, and as an entity, if they invest in them. As one example, how involved will the
Investor want to be with the Company after the investment is made? How much
involvement is the Company prepared to live with? Their needs to be mutual understanding
and comfort on this topic.
• Any desire to acquire Board seats or rights to observe Board meetings (and commitments for
continuity of the representative)
• Legal structure of investments and which financial exits are preferred
• Any special terms the investor might want on the Term Sheet that are really unusual
Typically, strategic investors/business development executives will care most about how well this
Company’s offering matches their corporation’s objectives. In other words, will this Company’s
technology/product/offering enhance or extend their current or planned offerings?
Checklist of Materials for the First Meeting

For some strange reason, many Company CEOs refuse to acknowledge Many startup CEOs
that experienced Investors have seen at least hundreds of presentations and refuse to
can quickly identify lack of effort and superficial knowledge on the part of a acknowledge that
investors have
presenter.
experienced
hundreds of
Therefore, presentations by Tier I and Tier II Companies stand out. They
presentations and
have rehearsed their presentations and the key presenter knows it cold. can quickly identify
Often the presenter has rehearsed with an expert presentation packager. lack of effort and
For a first Investor meeting the Company’s presentation package typically knowledge.
7
includes:
7 The Silicon Valley Association of Startup Entrepreneurs sells a package of tools to its members for a modest fee at
www.svase.org This package includes the following:
• Is your business fundable? – this is a quick and straightforward self evaluation checklist.
• Funding Flow – charts the critical steps for a successful funding approach

A 30 second elevator pitch. This is a rehearsed interactive dialogue that conveys the 100,000
foot view in a brief, yet comprehensive manner. The listener must understand quickly what the
8
Company does for Who? How? Why? Why this is exciting?
A 15 minute investor PowerPoint presentation. This is a sales presentation, rehearsed to take
only 15 minutes, that grabs the Investors’ interest and compels their attention.
Backup PowerPoint material. This is well organized and easily accessible to help answer
questions. Key slides may be incorporated in a subsequent one hour meeting (45 minutes for
presentation and 15 minutes for questions). Backup material includes detailed information on the
competition.
Rehearsed presentations of all of the above. The key presenter knows it cold. He has rehearsed
with an expert presentation packager.
An investor or partner strategy. Before scheduling the meeting, the Company should have
established a funding/partnering strategy. Criteria in this strategy will be used to
qualify/disqualify investors/partners. This strategy reflects an understanding that many financial
Investors while likely to be more sophisticated financially; frequently do not understand strategic
investors; and that strategic Investors, while having less focus on financial returns; usually have
more sophisticated knowledge of their markets.
Straw proposals for partnering. Think through several of these in advance and be prepared to
discuss various scenarios.
NDA. Some Company CEOs ask that an NDA be signed before the first meeting. However,
most Investors will not consider this until after an investment. Strategic Investors may be more
flexible.
Executive Summary. Soon after its first successful Investor meeting the Silicon Valley startup
will need to have ready a 2-3 page Executive Summary document. It describes the startup, its
plan, and funding requirements with information similar to that provided in the PowerPoint
Presentation.
The PowerPoint slides are described in detail later in this White Paper.
One or more
consultants are
The CEO works hard to prepare a detailed draft of the presentation. Then one or
retained to develop
more appropriately experienced consultants are retained to develop the finished
the finished
PowerPoint, prepare the presentation, and help determine what information should
PowerPoint and
be presented before and after Investor qualification. Further, because the target provide related
audience can strongly influence the presentation content, the core presentation support.
must be sufficiently flexible to facilitate tailoring as needed.
• 10 slide funding pitch template – (similar concept as this white paper)

• Creating a compelling Executive Summary
8 Investors prefer tightly focused companies with the intellectual property or core capabilities to enable additional
offerings in the future.

PowerPoint For Financially Oriented Investors
This white paper discusses information that the Investor will typically receive during a first meeting with
a well-prepared Company (especially a startup). This anticipates a 15 minute presentation that was
prepared for an angel/seed financing or partnering discussion.
Many Companies have difficulty putting together a coherent 30 minute presentation in response to being
9
told that they need a 15 minute investor presentation. As a result, only Tier 1 and some Tier II
10
Companies come across with a well-organized presentation of approximately the appropriate duration.
A well prepared Company has a crisp 15 minute PowerPoint presentation targeted to a financially
oriented Investor audience. It is:
• Tight, focused, and every slide is as compelling as possible

• Addresses only core topics
• Has only key points on the slides; is not cluttered with detail. Text should be at least 24pt.
• Rehearsed to be no longer than 15 minutes
In other words, the audience learns that they can believe in the Company and in its offering; that they
can (potentially) make money by investing in (or doing business with) the Company, that the Company
CEO is well informed, confident, and can think well under pressure.
PowerPoint For Strategic Investors

Some corporate development teams have the flexibility of being able to look at an opportunity and then
decide which of the following they prefer to consider:
• Strategic partnership or development agreement (may be decoupled from any investment)

• Licensing of intellectual property
• Collaboration
• Investment (In some cases, investment or acquisition may be a last resort if collaboration,
licensing, or partnerships are not feasible)
• Acquisition
Which of these alternatives they prefer may depend entirely on the specific situation.
Some technically oriented investors in Silicon Valley, such as chip focused investors, will only look at
deals that center on specific technology groups. In some cases they have researched the markets and have
a good understanding of market demand. Some such investors prefer to see very technically oriented
presentations. They expect to see the standard business information noted in the slides above. But, they
really want to receive a one hour technical presentation at the block diagram level. Most technically
centric Company CEOs can be easily coached to deliver a one hour technical presentation.
9 At startup showcase events, organizers, on short notice, frequently tell the presenting startups that have a shorter time
slot, sometimes only 5 minutes.
10 Presentations targeted at those with extensive domain knowledge can use acronyms and buzzwords. However, the
startup should realize that any group may include attendees who do not understand them.

The Presentation of The PowerPoint
It is key to couple the verbal presentation to the brief phrases on the PowerPoint slides. The presenter
really needs to be prepared for a range of things that may happen while they are in front of the investors.
This range includes:
• Investors who have done no homework and sit through the entire presentation and after
without a question, emotion or any expression of any kind.
• Investors who listen to the pitch and interact somewhat. Others will flip back and forth
through their paper copy of the presentation during the presentation. Questions come after
the presentation.
• Investors have read the Company's material earlier, know the space, have probably looked at
other companies in this space and do not want to hear a pitch. On slide one, they start
asking questions.
Savvy CEO's will turn off the projector and allow the
In a great
Investor to control the situation and will respond to the
presentation, the
specific Investor questions. In spite of the “derailed” Investor comes to
agenda, the CEO must be sure that all the important understand that the
messages (Team, Market, Solution) are delivered during startup CEO is so
the meeting. knowledgeable that
When an attendee requests information that has not been he/she can adapt
presented, or is being held back pending Investor quickly to respond to
qualification, the presenter can then say one of the various presentation
following: needs.
• (VERY GENTLY) We would like to hold that
back until we both confirm mutual interest. If the Company perceives that
the requested information is extremely proprietary, they may say that “We do
not normally discuss that outside of our core technical team. After an
investment we will be willing to provide an overview on that issue.” This can
become a sticking point. It needs to be said carefully, or, Investors will see
the CEO as non-responsive. Some technically focused Companies have
walked away from Investors over this issue. After the Investors control 50%
of the stock, this answer will probably not be acceptable. But, by then, all
involved should see each other as being on the same team.
• The answer is X.
PowerPoint Slides
This section describes a “business” presentation for financially oriented investors. Strategic investors will
typically be more interested in the product or technology aspects of a company’s offering. Before the
meeting, it is wise to ask any Investor what type of information they wish to see. The basic types are:
• Business presentation
• Product presentation
• Technology presentation
• Other type of presentation, based on a specific request

List of Recommended Slides for a Business Presentation
This section describes the following slides, one by one:
Executive Summary Management Team Technology and IP

Mission Boards and Advisors Business Model
Strategy Achievements and Assets Financial Projections
Market Pain and Solution Customers and/or Partners Fund Raising
Market Opportunity Competition Other Information
Which information must be presented before investor qualification is unique to each situation.
Versions of the PowerPoint Presentation

This section describes the individual PowerPoint slides. However, the Company holds back some, if not
all privileged information until after Investor qualification. A startup CEO will probably end up with
several base versions of the Investor PowerPoint presentation. These will include:
• A generic high-level version that is shown to the broadest group of unqualified Investors. So,
for a first presentation by a software startup the slides might address:
The Company is best at doing “X” that no one else can do. Here are the
underlying innovation, product, solution. That translates to the following
customer benefit that is improved in this way.
These markets desperately need this solution (urgency
vs. nice-to-have) The CEO presents
These functional roles must purchase this. This creates partial information
a “Fundable” target market. to unqualified
These customer problems are solved by this solution. Investors.
This is how customers talk about this problem. Their More complete
point of view is described in this way. information can be
Here is the world class team. provided to
The real cost to bring the solution to market is “X”. Investors before a
Time and resource requirements are “X”. Term Sheet is
• The “leave behind” version after any meeting needs to stand on its signed.
own without any verbal supplement when (for example) it is
emailed to an Investor who did not attend the presentation by an Investor who attended the
meeting. This version may omit some information/slides
• Versions with privileged information are used for meetings after Investors have been
qualified.
Hopefully, the slide presentation developer and the presenter both understand that which information is
presented before and after Investor qualification, the order of the slides, slide titles, and placement of
information by slide will vary to best fit a particular company’s business and maturity.
Here is the recommended information for a business presentation.

Executive Summary (1 slide)
This first, key, slide tells everything that is truly important about the Company on one PowerPoint slide.
This is the 50,000 foot view with only the key information. This is a must have slide. This slide should
address only core aspects of the business and display customer logos, symbols, and numbers. Avoid clutter
and peripheral information. Topics that may be included are:
• Focus of the business

• Business model diagram
• What market pain is addressed? For what market? What % of what Total Addressable
Market (TAM)? Show logos for closed customers/partners.
• Why the solution is world class
• Experience that proves the team is world class (key)
• Revenue forecast
• Other compelling facts
• The CEO’s contact information must be on copies distributed to potential Investors
This first slide starts addressing the first thoughts of an investor or partner “What does this company do?
Is this a technology, marketing, licensing, partnering, or channel play? Am I comfortable with this type of
play by this team for this market? What are the key issues critical to success?”
Mission (1 slide)
This slide should address:
• What the company will do in the next 6-12 months. This should be quantified as much as
11
possible (revenue, product features completed, achieving some level of distribution, or etc.)
• Somewhere in the presentation, a timeline is often useful to describe past and future events.
Strategy (This information may be included on the Business Model slide)

• This is a high level discussion of how the company will accomplish its mission. It includes
how the offering will go to market and sell and to whom.
• May include a product roadmap showing key features by release and how each supports the
mission.
Notes
• The intended financial exit may be listed here. This is especially true if the business model,
technology, and market support the concept of a smaller investment with an earlier exit.
Market Pain and Solution (1-3 slides)

• What market pain (problem) is addressed? Why is a solution needed? How big is this
market pain? The size and significance of the “Market Pain” addressed by the Company is a
11 In some cases, objectives for the next defined period are described under use of funds.

key criterion.
• What is the solution? Why is this a world class solution?
• What future offerings (solutions) can be evolved from the first offering for these same
customers?
Notes
• Use of the offering must be easy and convenient. Otherwise, the use of intermediaries may
be required, thus creating a difficult-to-scale services business. Technology enabled services
startups can be scalable and thus can be fundable.
Market Opportunity (1 slide)

• Target markets showing segmentation based on the Standard Industrial Classification Code
(SIC Code) or North American Industry Classification System (NAICS Codes). How large
is each, how are they growing? What part of which segments are addressable and why?
• What is the opportunity size or TAM (see Glossary)? If the Company says it is creating a
market, the Investor wonders; “How do I know there is a market opportunity at this time?”
• The plan for growth, how business will grow, piece by piece to “own” what market. This
includes the strategy by which the Company will gain access to the appropriate channel.
• The world is “flattening out” and “globalizing” at an accelerating pace. Increasingly,
American companies are competing with foreign companies. This does not mean that the
markets are decreasing in size, but, evolving. These factors impact this Company as follows.
Notes
• Many Companies make the mistake of claiming that they will penetrate (for example) 10%
of a large market instead of understanding the real TAM that they should attempt to address
effectively. A good strategy grows the business in a step by step way; including showing how
the first few (or next logical group of) customers will be closed. This is also known as a
bottom up strategy.
• Many startups are launched solely in the US market and may later expand internationally.
Others are formed with the plan to perform internationally from inception.
• Some suggest that the right Investor (individual) knows the market already (before the
presentation).
Management Team (1 slide)

• Who are the key officers? Why is each a real asset? Why are they better qualified to run the
company and solve this market problem than anyone else? The quality of the officers is key
to the perception of the Company as a Tier 1 opportunity.
What experience proves that they
understand how to take a startup from $0 to The key officers need to
$10 million in this market sector? If this is have experience
an established company, why is this, the delivering new products
right team to grow it to the next level? to this US market.
Which officers are critical to success will
vary with the type of Company. For example, for a Fabless Chip startup, the

CTO or technical architect may be the critical executive. In a Marketing Play,
the marketing and/or sales officers will likely be the critical executive. However,
the CEO is usually the most critical executive in the Company.
• Total headcount and recruiting strategy for key roles. The completeness of the team required
at the time of a first investment depends on the situation. Some technology focused “plays”
need only the technical expert(s) who will drive technical success.
• Key consultants may perform one time tasks such as developing the strategy and facilitating
initial business growth. This relieves some of the pressure on the “team” to perform in so
many ways.
Notes
• For an IPO or high multiple exit play, there may be a note indicating that certain officers are
willing to step aside to be replaced by officers selected by the Investors.
• The key officers need experience (and success) in delivering new products to this US market;
or, as a less desirable solution, the Company can use an appropriate advisor or advisory
consulting company to take on the sales responsibility. While not a metric, having one or
two employees who have Silicon Valley headquartered startup experience makes the Investor
or partner more comfortable.
• The key presenter, and perhaps each of the presenters, will describe how they will accelerate
progress. This almost always means reducing time to revenue.
• The business partner, licensor, or investor wants to receive information that facilitates
understanding of the key executives from various perspectives:
How well does the CEO/Team think on their feet? Is their experience relevant?
How articulate are they? Is there a sense of urgency about the important issues?
Are they prepared and relaxed? Are they really coach-able? Do they really
understand the Company’s space and the fundraising process? Do they have the
right personal network to do this?
How well did they choose the other employees/consultants?
• Presentations to Angel and Seed Stage investors frequently include “Might Be” Officers who
have agreed verbally, or contractually, to become employees if the startup is funded.
Investors want to understand the strength of the commitment of the key team members.
Boards and Advisors (optional, 1 slide)

• Board of Directors (most startups do not have a complete Board in place prior to an A
12
Round).
• Board(s) of Advisors are most valuable at the angel or seed stage, and less crucial later. The
Company has written contracts with vesting schedules for equity based compensation for its
Advisors.
• Legal advisors including IP experts
• The corporate structure, needs to be described here or elsewhere.
12 For those interested in Board issues, the Western Association of Venture Capitalists published a white paper on
January, 2007 at http://wavc.net It is titled The Basic Responsibilities of VC-Backed Company Directors

Achievements and Assets (optional, 1 slide)
• Description of history or track record including a list of key achievements to date, probably
in a timeline format. One example is FDA approval cycles. Another is when external factors
control the Company’s window of opportunity. The importance of each achievement is
indicated.
• List and description of any significant assets:
Customers and/or Partners (1 slide)

• Who are the paying customers to date? How do they use the offering to do what? Why is
this mission critical? Which are available as reference customers?
• How can the customers and the channel to them be defined? Having real, paying
• Investors will want to know if any prior employer believes that the customers who will
prospect/customer list belongs to them. talk to potential
• Who are the current or potential partners? What will they really investors is a key
do for the Company? Are there meaningful dialogues in process? asset for a startup in
Are certain partnerships required for success? raising funds.
Notes
• Explaining the cost of the prior solution utilized by each paying customer is useful.
Competition (1 slide)
• Who are the competitors? There is ALWAYS competition. Even if the potential customer
is doing nothing, the Company must overcome the customer’s inertia and current allocation
of money to unrelated products and services. What do they do
well? (If the Company executives believe that no one is competing
If a startup does not
for the customer’s budget, they are not credible).
have a sustainable
• How does the Company do what, better than any other solution? competitive
• What is the sustainable competitive advantage that will protect advantage, it needs to
the Company from existing or future competitive products? This develop one.
is not necessarily a technological advantage. Usually, it is based on
intellectual property or core competencies of key team members.
Typically, patents by themselves or relationships by themselves are not adequate. If there is
no sustainable competitive advantage, the Company needs to develop one.
Technology and IP (1 slide)

For a first presentation, some technically focused strategic funds and some technology companies will
wish to see much more technical information. For example, some in the semiconductor industry will
prefer to see a one hour technical presentation at the block diagram level.

13
• What is their technology, architecture, etc.? Why is it “World Class”?
• What intellectual property protection do they have in place today to protect patents and
trade secrets?
Notes
• If the Investor has a serious interest, at some early point they will want to ask about the
origins of the technology. Are any of the Company participants still employees of other
companies? Did the founders develop the technology using resources belonging to a prior
employer? Was there an invention assignment agreement in place with a prior employer that
impacts intellectual property ownership? Was the technology presented to and thus offered
to any prior employer? If a founder owns the intellectual property free and clear, has it
already been assigned to the Company?
• Legal issues associated with any use of Open Source software are addressed by “X”.
Business Model (1 slide)

• A robust description of the Company’s business model. The best presenters can sketch the
relationships between the players (Company, suppliers, customers, partners, relevant others)
showing how information, product, contracts, and $ flow between them.
Notes
• The presenter is prepared to describe; how they attract new customers, differentiation from
each of the key competitors, and required changes in the way the customer does his business.
• Saying “our business model is to sell differentiated product” will not impress Investors.
• Many startups say that they offer a truly transformational offering. This is desirable, as long
as the offering provides a level of benefit that is so compelling that it overwhelms all
objections to the required changes in the end user’s way of doing business.
Financial Projections (1-2 slides)

Financial projections (Profit & Loss and Cash Flow) are best made with a one page spreadsheet showing
units shipped, revenue, and etc. In some cases, projections can not yet be made for some reason. In that
event it is better that this be stated in a believable way as opposed to creating fallacious data. Projections
14
are typically for 5 years. Investors will not expect that the projection for year five is highly accurate.
However, the assumptions, detail, and reasonableness for year one will receive serious examination.
Investors know that the natural tendency is to overstate achievable revenue and understate expenses.

• Revenue. See the Market Opportunity slide. Investors prefer bottom up forecasts that are
supported by real plans. They will consider what is the time line of customer interaction to
achieve a given revenue assumption? Is the near term revenue projection supported by the
necessary pipeline activity today? How does the long term projection compare to the total
13 See the slide on Competition

14 For a discussion of financial plans for startups, see Chapter 2, pages 23-40 of Funding and Financial Execution for
Early Stage Companies by Rod Hoagland

market size? Is the projected share unrealistically high or uninterestingly low?
• Expenses, the monthly “Burn Rate” for both the current period and after investment should
be shown
• Profits before taxes.
• EBITDA (earnings Before Interest, Taxes, Depreciation, and Amortization)
• Cash Flow
• Capital investment
• Proceeds from sale of equity
• Current debt of $0.00. The Company should not accrue salaries if it wants to raise money!
Investors prefer to invest in future growth as opposed to past debt of the Company. As the
total amount of debt (especially accrued salaries) increases the company becomes less
“fundable” by Tier I, and then by Tier II Investors. Companies that already have a revenue
stream may well have working capital financing lines in place which will not present a
problem so long as the line is truly used for working capital needs and the line will not be
paid off with the proceeds of Investor financing.
Notes
• Key assumptions and useful related information should be available on backup slides.
• Financial projections must be based on more than a one page spreadsheet. Understanding
15
and implementing the following will be very helpful.
Methodology for developing a financial plan
Knowing how to build a credible revenue model
Understanding rules for building a usable expense model
Techniques for preserving scalability and data integrity as subsequent updates to
the plan are made
Ways to validate the model using publicly available data
Equity planning for the founders, employees, and investors
How to project future valuations from the financial plan
Verifying the financial plan (spreadsheet)
• Company can compare forecast revenue ramps to revenue ramps previously achieved in their
sector.
• The technology company has performed a preliminary IRR calculation and is prepared to
discuss it and how it compares to what is expected in that industry sector.
• While discussing this slide, the CEO wants to briefly project that he understands key tasks
including how to manage cash flow, IRR, and its meaning to investors in early stage
startups, valuation, etc.
Fund Raising (1 slide)

Fund-raising is a subject the Company usually wants to discuss only with Investors. However, business
partners and customers are also interested and in early days may insist on knowing about it.
Business development executives and Investors prefer that the Company include valuation expectations.
However, the Company will probably hold back on this unless they are looking for a low valuation.
15 Adapted from suggestions by Anthony Nassar of Venture Momentum, Inc. in an eBIG event discussion.

• Investment required at this time. It is important to show the Company is asking for enough
money to achieve the next key benchmarks, with enough cash afterwards to raise the next
round, and to have a financial cushion. For seed financings this may be 6 months. In all cases
it is situation-ally specific. Show the cost to achieve each milestone.
• Total funds required to achieve key milestones or breakeven. Depending on the situation,
achieving key milestones can be much more important than achieving breakeven.
• Total investment required (total for all rounds).
• Deliverables tied to use of funds. When/why more funds are needed. Goals achieved by
then.
• Prior funding raised involved the following list of investors
•
16
Anticipated financial exit, how it will be achieved, and when it will occur. Corporate
development units tend to be more focused on how soon production product can be shipped.
Financial Investors prefer that the startup will be capable of an IPO exit (implies a level of
quality in several ways).
Notes
• The best investors, from the perspective of future investors, provide funding, have
connections to key business opportunities, and furnish strong introductions to superior “next
round” investors.
• Investors will want to understand the “Financial Exit” expectations of the startup officers and
the other investors. This includes expectations as to type of exit, when, and investment
multiple.
•
17
Typically a technology company is looking for a small number of key partners/investors
with knowledge of a specific domain. However, if the Company is trying to cross diverse
18
sectors, they may be seeking multiple partners/investors to cover all of the key sectors.
• There is a fair equity plan in place with employees (including founders) on a four year
vesting schedule (with cliffs). All put their own employment agreements in place early so
that the vesting schedule clock starts “ticking.” For IPO’s or high multiple exits, the
“overhang” must be reasonable.
• It takes at least nine months to get to know the Silicon Valley community well enough to
raise funds. Part of this can be done while still resident elsewhere through visits to Silicon
Valley. Some corporate funds and others with global reach can invest from within foreign
countries.
• Startups entering the US market from foreign country origins should note that Investor
requirements for staff US market experience will likely be lower outside of the Tier I Silicon
Valley Investor community
• Depending on the CEO, founders, and/or CFO, there may be written documents and verbal
commitments that create a host of real or potential equity/IP rights holders that is difficult-
to-resolve.
16 Please see also the material under “Applicability of This Document”.

17 Having only one partner/investor can be a problem if one person loses interest in or faith in the Company.
18 A Company does not want to have an offering that is so complex that no one wants to get involved.

Other Information (Probably has a different title)
• Investors, acquirers, and business partners will perform due diligence. If they uncover
material facts which have not been disclosed “up front”, they may disengage on general
principles. Further, they may spread negative stories
about the Company “to protect other Investors.” It is very important to
• Product Development may need to be described on a show how prospective
separate slide showing a Product Roadmap. customers will be
• Especially, if product development is planned or involved in the
currently in process, it is very important to show how product development
prospective customers will be/are involved in the process.
product development process.
• The timing of the product launch is important. Why is now the right time? Why is it not
too early or too late? Being early is the same as being wrong. Almost all business concepts
have a finite “Window of Opportunity.” Thus, it is useful if market timing factors are
described.
• The last slide should always include “Thank You” and complete contact information.

Glossary
Angel or Seed Round The Angel or Seed Stage Round is the first round of capital financing beyond
the financing provided by the founders or FFF. There may be several Angel or
Seed Stage Rounds. Ultimately, it or they precede the A round (the first round
of professional capital financing).
Burn Rate The monthly “Burn Rate” is the cash expended in a typical month by the
technology company at the current (or designated) funding level.
Cliff Vesting schedules for officers of startups frequently provide for a 6-month or 12
month “Cliff.” Prior to the Cliff, the person has not earned any shares/options.
At the time of the Cliff, the person receives rights to all of the shares/options
earned during the preceding 6 (or 12) months.
FFF FFF refers to those who make very early investments in startups. Formally
known as Friends and Family, the startup community sometimes refers to them
as FFF or friends, family, and fools.
IPO IPO means initial public offering. For a Silicon Valley startup, it is usually on
the NASDAQ stock exchange. But, it might be in Taiwan or elsewhere.
Overhang Overhang is the amount of equity held by the founders and employees. If this is
too high, i.e. more than 20% of what will be the outstanding equity at the IPO,
the company becomes non-fundable because new employees cannot be “paid”
enough equity as a part of their compensation. This percentage limitation at the
time of an IPO is usually only with respect to outstanding options and options
available in the option plan not the percentage of shares actually owned by
founders and employees. The perception that the overhang is “too high” usually
19, 20, 21
impacts a startup well before an IPO Overhang at the time of an
acquisition can be more acceptable.
TAM The total addressable market (TAM), is only that part of the total market that
can be reasonably addressed by a specific product.
Tier 1 The highest quality company, startup, partner, or investor.
Tier 2 The intermediate quality company, startup, partner, or investor.
Tier 3 The lowest quality company, startup, partner, or investor.
19 Executive recruiters are more likely to correctly understand overhang than the potential employees.
20 If a startup replaces an officer or officers before an IPO, vesting clauses in employment contracts may prevent
overhang from becoming a problem from the company’s perspective. However, automatic vesting clauses in
employment contracts (usually only for CEOs) can complicate this issue.
21 Some employee and non-employee option plans provide for the distribution of stock as well as options.

Index
Accelerating progress, 17 IPOs on the NASDAQ, 7

Achievements and assets slide, 18
Applicability of this document, 7 Johnson, Eric, 4
Assets, 18
List of recommended slides for a business presentation, 14
Becker, Joe, 3
Board of Directors, 17 Management team slide, 16
Boards of Advisors, 17 Market opportunity slide, 16
Boasso, Ken, 3 Market pain and solution slide, 15
Brahmbhatt, Dhaval, 3 Massey, Tim, 4
Bridge loans, 7 Messina, Michelle, 4
Business model slide, 19 Min, Catharina, 4
Business presentation Miscellaneous information slide, 22
Recommended slides for a, 14 Mission slide, 15
Mushero, Steve, 4
Checklist of materials for the first meeting, 10
Company objectives, 8 Objectives for the first meeting, 8
Company tactics, 9 Officers, 16
Compelling facts, 15
Competition slide, 18 Partner qualification, 16
Customer slide, 18 Partner slide, 18
Partnerships
DeNoce, Craig, 3 Certain ones required for success, 18
Disclaimer, 2 Paying customers, 18
Pogue, Mike, 4
Executive summary slide, 15 PowerPoint Presentation
For financially oriented investors, 12
Financial Exit For strategic investors, 12
High-Multiple (of original investment amount) Other uses, 8
Acquisition, 7 Presentation of, 13
Intended, 15 Slides, 13
Low Multiple Exit - Acquisitions, 7 Versions of, 14
Moderate Multiple Exit-Acquisitions, 7
Shorter Term Moderate Multiple Exit - Acquisition, 7 Recruiting strategy, 17
Financial investors, 6 Reference customers, 18
Financial projections slide, 19 Roden, Laura, 4
Fund raising slide, 20 Ross, Don, 4
Gale, John, 3 Serial entrepreneurs, 6

Strategic investors, 6
Harley, Barbara, 3 Strategy slide, 15
Hoagland, Rod, 4 Sustainable competitive advantage, 18
Investor qualification, 16 Taligo, LLC, 3

Investor/ partner objectives, 9 TAM, 15
Investor/ partner tactics, 10 Technology and IP slide, 18
IP experts, 17 Timelines, 18
Walczykowski, Eric, 4
World class solution, 16

29 RSCH - Startup Presentations To Angel-Seed Stage Investors and Partners - 7.07

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

29 RSCH - Startup Presentations To Angel-Seed Stage Investors and Partners - 7.07

Uploaded by

Copyright:

Available Formats

Taligo, LLC

Editorial Review Board

Barbara Harley Steve Mushero

© Copyright 2007 Taligo, LLC

Table of Contents ............................................................................................. 2

© Copyright 2007 Taligo, LLC Page 2

Editorial Review Board

© Copyright 2007 Taligo, LLC Page 3

© Copyright 2007 Taligo, LLC Page 4

• Establishing initial relationships between a technology focused company (the “Company”)

© Copyright 2007 Taligo, LLC Page 5

Financial Investors include:

• Most Angel investors (wealthy individuals) and Angel funds

• Early stage corporate investors including corporate development executives, business

© Copyright 2007 Taligo, LLC Page 6

Applicability by Intended Financial Exit

IPOs of Varying Success. (less frequent)

© Copyright 2007 Taligo, LLC Page 7

Low Multiple Exit Acquisitions.

Other Uses of The PowerPoint Presentation

Objectives For The First Meeting

The Company’s Objectives

© Copyright 2007 Taligo, LLC Page 8

The Company’s Tactics

• Determine if the company has made a competing investment.

In the first meeting, the Company’s tactics include:

• Review the agenda and time availability

Investor/ Partner Objectives

© Copyright 2007 Taligo, LLC Page 9

Checklist of Materials for the First Meeting

© Copyright 2007 Taligo, LLC Page 10

• 10 slide funding pitch template – (similar concept as this white paper)

© Copyright 2007 Taligo, LLC Page 11

• Tight, focused, and every slide is as compelling as possible

PowerPoint For Strategic Investors

• Strategic partnership or development agreement (may be decoupled from any investment)

© Copyright 2007 Taligo, LLC Page 12

This range includes:

© Copyright 2007 Taligo, LLC Page 13

Executive Summary Management Team Technology and IP

Versions of the PowerPoint Presentation

Here is the recommended information for a business presentation.

© Copyright 2007 Taligo, LLC Page 14

• Focus of the business

Strategy (This information may be included on the Business Model slide)

Market Pain and Solution (1-3 slides)

© Copyright 2007 Taligo, LLC Page 15

Market Opportunity (1 slide)

Management Team (1 slide)

© Copyright 2007 Taligo, LLC Page 16

Boards and Advisors (optional, 1 slide)

© Copyright 2007 Taligo, LLC Page 17

Customers and/or Partners (1 slide)

Technology and IP (1 slide)

© Copyright 2007 Taligo, LLC Page 18

Business Model (1 slide)

Financial Projections (1-2 slides)

This slide should address:

13 See the slide on Competition

© Copyright 2007 Taligo, LLC Page 19

Fund Raising (1 slide)

© Copyright 2007 Taligo, LLC Page 20

16 Please see also the material under “Applicability of This Document”.